The figure given below represents the PPC in two nations

Question

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4
 
-If an economy is operating at a point outside the PPC, either the society has resources that are not being fully used or production is not efficient.

Quizplus · Accepted Answer

Operating at a point outside the Production Possibility Curve (PPC) suggests an unattainable level of production with current resources and technology, not inefficiency or underutilized resources.